A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Leadership

Leveraging the loyalty differentiator in the newsagency

Shopper loyalty has become a maze of hoops, often with little real value at the end for shoppers, and retailers. Almost 9 years ago to the day my newsagency software company launched a new approach to loyalty. Yesterday, I shot this short video in which I talk about what continues to be a differentiating approach to loyalty. I know of hundreds of newsagents using this, and hundreds of other retailers.

Sure the video promotes my software company. It also encourages you to look at what you do in the loyalty space and to question whether what you do values shoppers and differentiate your business.

This simple approach to loyalty is easily understood and this helps people engage with it sooner, even those who make a one time only visit to the shop.

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Leadership

Lotterywest to pay every Lotterywest retailer $30,000

Lotterywest sent this email to their retailers today:

Today we are announcing a $17.5 million COVID-19 Retailer Incentive Package to assist Lotterywest retailers during this very difficult time.

The package includes $30,000 for each Lotterywest retailer, which will be paid in three $10,000 monthly instalments, starting from Wednesday 8 April 2020. We will also suspend terminal and service fees for every store for six months.

Premier Mark McGowan and Lotterywest have also established a $159 million COVID-19 Relief Fund to provide support to organisations that are helping people experiencing hardship, announced by the Premier earlier today. Read the full media statement here.

Lotterywest responds to COVID-19

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Here is a list of Questions and Answers we’ve put together about the package.

You can also access all the information on the Retail Link website.

We’ll continue to keep you updated. In the meantime, please direct your questions to your Retail Relationships Officer, or contact our Customer Services team on 133 777.

Thank you and please take care.

Kind regards

Susan Hunt PSM
CEO Lotterywest and Healthway

———

What an extraordinary move for WA newsagents and lottery retailers. I know from calls already tonight that this announcement has delivered extraordinary personal relief in addition to the money that will flow.

Kudos to Susan Hunt and the Lotterywest board and to Premier Mark McGowan for delivering on his election promise to Lotterywest retailers.

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Leadership

The Kylie Jenner Vogue is still available

At Melbourne airport yesterday I saw 4 copies of the Kylie Jenner Vogue Australia issue available in one shop.

Tech savvy magazine publishers and distributors would know exactly which shops have stock and would leverage this information to drive in-store traffic.

Instead, we have a low-tech approach to magazine distribution that serves only the publishers and to the retailers and consumers.

While it is not often we see magazines like this one that ‘sell out’ within 24 hours. there is benefit in a smart tech solution to help retailers and consumers find titles. This approach would ens=courage newsagents as to the value of the category.

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Leadership

Politicians in Australia to small business retailers: don’t do as I do, do as I say

The federal parliamentarian dual citizenship mess in which we have found ourselves here in Australia for months now shows how politicians treat themselves as elite, special, compared to common folk, the voters who vote them in.

While we in small business are highly regulated, subject to audit and penalised for even simple honest oversight, politicians refuse to permit themselves to be subject to the same.

While individuals are highly regulated, subject to audit and penalised for even simple honest oversight, politicians refuse to permit themselves to be subject to the same.

The moment the first dual citizenship question was raised, an ethical leader keen for democracy would have ordered an immediate full audit of the status of all politicians.

We are bereft of leadership for everyday Australians in Australia.

For months major party politicians have spun their wheels on the issue of dual citizenship and refused to agree to the type of audit that is regular for us in small business. For months they have said politicians should self regulate on this issue while at the same time imposing challenging and enforced regulation on small businesses and on individuals.

Shame on us for allowing your politicians to get away with them setting a standard for their own behaviour that is lower than standards they vote to impose on regular people.

The one party that has provided leadership on this issue is the Greens. From the outset they called for an audit. The are right. Yet their call has been mocked, especially by the government side of the parliament. This side of the parliament that is in control, in leadership, has eschewed leadership and instead engaged in puerile games.

They must think we are fools.

There ought be an audit of all federal politicians immediately, no matter the disruption or the cost.

Section 44 of the Constitution is not new. Its provision have been known for decades. It is easy for anyone to determine their status. Whether they do this comes down to how they see themselves compared to how they see the peril they serve.

We the people deserve honest leadership, leadership that is transparent and for all people, leadership that submits itself to the same standards and level of regulation as they impose on those they serve. We do not have this in Australia at the moment.

Every day, we see small business retailers squeezed by regulation, while at the same time, right now, seeing politicians refuse even basic regulation. This double standard has to stop, for the good of our country and democracy.

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Ethics

Leadership urgently needed from Tatts on the year of mixed messages

Tatts agents are justifiably confused by the changing messages from the organisation over the last year.

The company’s position on fit-out requirements, digital screen requirements, audit standards and more have been changing, with businesses in some locations pressured and penalised while others in other locations are let through for lesser breaches or refusal to act.

The actions of Tatts represent a failure of leadership. Worse, they represent a disregard for small business retail.

I know of plenty who were bullied into undertaking the new fit out and digital platform installation without any business plan put by Tatts. Now, they find out that others who have not done the work yet may have a lower cost for what is to be done.

If I was a retailer who had completed the refit and installed digital screens prior to now I would be contemplating a compensation request. Part of the pitch from Tatts reps, I am told, was there is no getting out of this, everyone will have to do it. It turns out that statement was not true, given the position of Tatts today.

People yet to do the refit and yet to install the digital screen(s) are at a commercial advantage to those who have gone before them.

Tatts need to communicate clearly from the top down and ensure that all within the organisation communicate a consistent message. Localised bullying has to stoop. Localised miscommunication has to stop. Communication needs to be only in writing, for training purposes, of course.

Newsagents meeting with Tatts reps may want to consider openly recording conversations.

Newsagents are at where they are at as a result of poor leadership within Tatts. Shame on the company for the bullying. Shame on the company for the mixed visual images around the country. Shame on the company for the lack of a business plan at the retail outlet level.

Tatts has only itself to blame for this mess.

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Leadership

ALNA representations pay off for WA newsagents

Newsagents in Western Australia would have to be happy with the announcement from Lotterywest that they will increase their contribution toward the cost of shoplifts, an immediate review of the shoplift design and a common sense approach to signage.

The announcement by Lotterywest is a win for ALNA and the campaign they have run on behalf of newsagents.

Newsagents outside of WA will be envious and keen to explore how they can leverage similar gains from Tatts.

Here is the Lotterywest letter:

Here is the ALNA statement:

Lotterywest agrees to halt RTP & Network Expansion & Increase Shop fit Contribution – A Result of ALNA’s Representation to the new WA Government

ALNA welcomes today’s important news for all WA lottery retailers, that Lotterywest has agreed to the following essential changes to the Lotterywest RTP including contribution and review of design and necessary halting of the network expansion program:

  • Increase its contribution towards the Lotterywest shopfit with the intention to cover the costs of the Lotterywest components of the shopfit and to pay a capped contribution towards installation costs.
  • Immediately halt any further shopfits and review the RTP to address concerns on the shopfit and the signage
  • Immediately halt the Network Expansion Program and halt any further expansion pending appropriate review of the impact on existing locations.

Further to the communication sent out to all retailers today, Lotterywest have also commented in a letter sent to ALNA, that:

  • We will explore opportunities to involve retailers in our online offerings. This is a longer-term objective that will take some time to develop.

ALNA has been delighted with the support from the new WA Government, in particular the WA Premier Mark McGowan and Small Business Minister Paul Papalia. Both the Premier and Small Business Minister are extremely supportive of ALNA and WA lottery retailers and we extend our thanks to them in achieving this essential outcome in such a speedy fashion. WA Premier Mark McGowan said in a recent newspaper report ‘We acknowledge and understand the issues raised by the Australian Lottery & Newsagents’ Association’.

This common-sense outcome has taken more than a year of hard work by you the members and your Australian Lottery & Newsagent’s Association.

We are extremely pleased that Lotterywest has listened and is now treating its retail network with the respect you truly deserve.

This outcome sees:

  • a fairer apportioning of costs for retailers
  • an immediate halt and necessary review of the shopfit design
  • an appropriate and common sense approach to signage – not a less is more minimalist strategy not appropriate to the sale of lotto
  • an immediate half of all further shopfits.

ALNA appreciates Lotterywest coming to this conclusion and we look forward to working closely with Lotterywest once again for the betterment of Lotterywest and all WA retailers. Together, we can achieve great things and we look forward to a new era with Lotterywest and retailers.

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Leadership

Vale Ken Murphy

Ken Murphy, former CEO of the Queensland Newsagents’ Federation, has passed away while overseas on holiday.

For many years at the QNF Ken was a fighter on behalf of Queensland newsagents. He was outspoken on matters of industry unification, poor national leadership and the Bill Express disaster that cost newsagents tens of millions of dollars.

After Ken left the QNF the weakened organisation failed to serve newsagents and it ultimately merged with the ANF. Those years after his departure reflect the loss of Ken’s service on behalf of newsagents.

Regardless of the side you took on any matter with Ken, you knew he was fighting for what he felt was right and fair for his members. Ken was missed when he left the QNF and will be missed more so on the hearing of this news.

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Leadership

The online strategy helping newsagents win sales locally and interstate

Last year, newsXpress launched an integrated online strategy through multiple websites that are directly connected back to newsxpress businesses and promoted on Facebook and other social media platforms. The websites are also structured to appear high on Google and other rankings.

The websites are brand-focussed. That is, they promote the brand of the products ahead of the business name, as this is what people search for online.

The strategy was developed based on comprehensive research.

The result has been extraordinary. Each of the websites is generating new foot traffic in-store as well as online sales. People use the sites to find local stores with stock as well as to purchase online.

Daily, there are excellent sales where the goods are being shipped interstate to people who would otherwise have never purchased from the participating retailer.

While this is a newsXpress initiative for newsXpress members, the project demonstrates what is possible for locally owned tech-connected small business retailers. It proves  small business newsagents can be data compliant and they can be tech-enabled in a world class way.

I make this point about compliance and being tech-enabled as too often suppliers to the channel say newsagents are not compliant and not tech-enabled. My argument to them over the years has been give newsagents a commercial reason.

This integrated online strategy provides a compelling reason, and it works.

In one case, a newsagency located ten hours by road from the nearest capital city did more than $5,000 in sales online is a few weeks, to people who have never been to the shop and will never visit the shop, without spending a cent on extra stop, with 100% of freight costs covered, delivering bonus bottom line profit. This in a town challenged economically.

How 1,100 new customers found local newsXpress stores.

Over the last six weeks, more than 1,100 new customers purchased online from local newsXpress stores, spending tens of thousands of dollars. Already, some have been back to make more purchases.

In many cases, the new customers are interstate from the newsXpress store that fulfilled the order.

Half of the purchases were made when the shops were closed.

Customers happily paid packing and shipping costs.

People purchased to have goods delivered to them, delivered as a gift for someone else or to be held in-store for them to pick up.

This e-commerce strategy from newsXpress offers a genuine omnichannel retail experience.

newsXpress has five websites attracting new shoppers for newsXpress members. The group will launch more in 2016. The online sale process for newsXpress members is easy, structured and certain.

Here is what four of our newsXpress members have to say:

  • The online strategy from newsXpress is amazing. I am shocked at how many sales I am getting for my suburban Melbourne shop. People are buying from us from all over Australia. And plenty of local people are finding out about our shop from the website too. This has changed my business. Katherine Yeunh, newsXpress Brandon Park (VIC).
  • We are thrilled to win thousands of dollars of sales to people who live interstate. The newsXpress online strategy is helping us find new customers and increase the value of our regional Victoria based newsagency. David Brakey. newsXpress Bairnsdale (VIC).
  • I have just sent off a $192.88 value order from my country town newsXpress business to Kew in Victoria. This online strategy is helping my small business find new customers I could never have found by myself. I love how easy this is working for me. Paige Noonan. newsXpress Minlaton (SA).
  • Wow! The newsXpress online strategy has been an extraordinary boost to my business in regional Queensland. New sales every day to people who live interstate. But better still the website more locals find us. This is a winner for us. Narelle Cooper. newsXpress Walkerston (QLD).

The newsXpress online strategy is leading edge. There is nothing like it in Australia. The strategy links newsXpress stores, real time, to online sites that are at the top of Google searches. Through this newsXpress is putting newsXpress businesses from all over Australia in front of as many eyeballs as the big end of town.

Footnote: I am a Director of newsXpress Pty Ltd.

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Leadership

New CEO for GNS

Newsagent owned Group Newsagency Suppliers stationery wholesale business announced the appointment of a new CEO today:

Paul Yardley has been appointed CEO of the GNS group of companies.

Paul’s most recent role was CEO of WH Smith Australia, one of the country’s leading news, book and convenience retailers. His time in that role saw –

  • Increased earnings and market share
  • Acquisition and integration of Supanews and other businesses
  • Implementation of key retail systems including inventory controls

Previously, he worked in retail consulting roles and has developed wide experience in business transformation. Starting his career in merchant banking, he saw the light and moved into retailing as Managing Director with video game retailer GAME Australia. He has a wealth of senior executive experience and is well versed in corporate transformation. Paul and his family live in Sydney.

Paul commences with GNS on October 17th and is looking forward to working with the newsagent and stationery businesses to forge a company well positioned for the future.

– Martin Hartcher
   Chairman
   GNS

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Leadership

NSW newsagents expressing concerns about the future of GNS

I have been in Sydney since Friday for the Reed Gift Fair and through the course of the weekend have spoken with plenty of newsagents. Several asked me what I thought would happen with GNS.

I have no insights and was interested in their views. Each expresses grave concerns for the future of the business.

One newsagent told me they could not even purchase a third of what they needed in a visit last week. Another said they have stopped buying because of supply inconsistencies.

These and other comments were from newsagents raising the issue. They were not prompted.  GNS leadership needs to communicate more with newsagents if they want tor stain their business.

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Leadership

Newspower announces another rebranding

Newspower has rebranded for the fourth or fifth time with an announcement earlier this week. It has also announced a new level, Newspower Go. This is like Newspower level from some years ago – more discipline, better deals.

While I think Newspower does need to change, parts of the announcement are problematic in my opinion:

Newspower has undertaken significant research across not only the Newsagency industry, but the broader retail sector and as a result Newspower has developed key strategies to deliver Newspower a stronger future.

Newspower ought discslose to its members the detail of the research and the detail of the resulting strategies as the organisations track record is not great – to give confidence that they have a good plan and that the plan is based on sound research.

NewspowerGo stores will be in targeted locations, designed to attract and engage with younger shoppers; Generation X and Millennials – those that will become your customers into the future.

Gen X and Millenials are newsagent customers today. Strategies to attract them were needed years ago. There are newsagents enjoying terrific success with these generations.

Stay tuned – the first NewspowerGo stores are scheduled to be opened later in the year.

This makes the an announcement that there will be a further announcement. Newspower is coming at this transformation very late. They should have stores running now so the announcement earlier this week was here – come see it live.

We are entering a new era of growth and development and as part of the launch of NewspowerGo we have also refreshed the branding for Newspower. Newspower was established over 20 years ago and is the Largest Newsagency Marketing Group in Australia and our brand is strong.

Newspower has, from what I understand, user 600 stores. This is down from something like 1,200 stores a few years ago. considerable decline in numbers does not represent strength. If I was leading Newspower I’d pull back from talking about size and focus on stabilising member numbers and then achieve growth before talking about growth.

I am a director of newsXpress, a competitor of Newspower. The weakness of Newspower in recent years has hurt more than Newspower and member businesses, it has hurt the channel. This is why Newspower has to get it right, why they have to fix their situation to drive the viability of member businesses. The rest of the channel is depending on it.

Newspower should start by developing its own ideas. I had to ask a Newspower staffer leave a confidential invitation-only session I was speaking at recently. I only realised they were there soaking up commercially sensitive ideas when someone else pointed it out. I wrote to Helen Dowling about this on June 17 and am yet to receive a response.

Our channel will benefit from strong competition between all of the marketing groups. The key word is competition. Competition has its roots in being difference, not copying. It benefits from being first with initiatives, not years late.

Historically, Newspower’s biggest challenges have been a weak uninspiring board, GNS controlling key marketing seasons and control at the state level on what is done under its name. For the future to be bright these three things need to be addressed.

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Leadership

Most Australian politicians fail on leadership and this hurts small business retail

As another week comes to an end there is little to show on the leadership front from politicians, especially in terms of leadership on matters of interest to small business retailers.

2016 could be one of the most wasted years in Australian politics for we are back to regular announcements of shifting budget allocations from here to there but with little progress.

On top of inaction from people who are supposed to be leaders we have double standards on show. The government appears set to shut the current parliament early for political expediency. they are doing this on the back of the Trade Union Royal Commission. This at the same time as we read about more reports of corruption in major Australian banks yet the same government politicians are saying there is nothing to see here.

My personal view is Australian needs a federal independent corruption commission with a remit across politicians, public servants and business.

Establishing such a commission would be an act of leadership. Such leadership would boost confidence in the community and we would all benefit from a boost of confidence.

I am tired of federal government MPs telling us we have to live within our means. Such talk challenges confidence, it slows spending and spending is at the core of the economy, especially in the small business niche of the economy we inhabit.

It is politicians who have to live within their means. They are the people achieving stellar pay rises each year with access to extraordinary expense accounts and making decisions that favour mates and those who support their political views.

I include all sides of politics in this spray.

Look at how Labor governments in the states ripped from the newsagency channel hundreds of missions of dollars of revenue from transport tickets over the last ten years.

Look at the decisions by state governments of various colours selling lottery licences to Tatts and then watching by as Tatts damaged newsagents with higher fees and draconian business practices that sig=nificantly increase the cost of doing business.

Look at the treatment of small business by the ATO compared to big business. I know of small business owners who are pursued for monies not owned and when the ATO realise their mistake there is no apology, no compensation for the cost of proving that the ATO was wrong.

Look at the free trade agreements that are focussed on a small niche of businesses in Australia.

Look at the NBN. We are spending billions on a mediocre network that will not provide the productivity lift the country needs.

Look at the failure of successive governments to adequately deal with low or no tax on online purchases coming into Australia by the plane load, competing with local shops.

It is cheaper for me to subscribe to some US magazines and have them sent to me from overseas than to purchase them locally.

Look at the red tape. Successive federal governments said they would reduce red tape. Clearly the Australian Bureau of Statistics, The Australian Taxation Office, the various State Payroll tax Offices and other federal and state agencies are yet to get the memo as I am confronted by more red tape that two years ago.

Look at the times this year and previous years around calling elections. These games are 100% about them looking after themselves. These are the people who legislate the regulations that hold plenty of Australian businesses back. While they control so much of what we do and charge us for the pleasure they seek the maximum freedom for their own selfishness.

This is nuts.

We in small business was to be able to run our businesses efficiently for the benefit of those we serve, those who work for us and for our own families. To do this we and our communities need to feel optimistic and we need a commercially nimble environment. Thanks to a lack of leadership in Australia all we have are words and political games.

I don’t care which side wins the election on July 2, or whenever the federal election is, as long as they deliver leadership. I don’t have to agree with them on everything – as long as they are strong on leadership and consistent in delivering what they say.

I saw former conservative Prime Minister John Howard on the SBS Insight program during the week, talking abut gun control following the Port Arthur massacre.  I was happy to see the Howard government voted out and felt he overstayed his welcome as Prime Minister by four ormolu years. That said, watching the SBS program, I realised that even though I did not like plenty of what he did, I missed his leadership. I knew where I stood.

I think this is what we are missing today. We don’t know where we stand as a country. An announcement is not leadership, it is not standing for something.

This matters to small business as it goes to how Australians feel. We in small business rely on this for sales growth.

Poor leadership from our politicians = poor sales … almost regardless of which party is in power.

Our channel is undergoing extraordinary transition during a time of extraordinary economic transition for the country. How our businesses come out of the transition depends on your leadership. I hope newsagents are better at leadership of their businesses than our current batch of politicians are at their jobs.

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Ethics

How my OCD playlist of Spotify helps get me float above the clouds

Above the clouds you can see forever. Your vista is another world. You find yourself looking long into the distance, unencumbered by the clutter of street level existence of the everyday.

I am talking here about a headspace, a de-cluttered mind able to process as if it is in an above the clouds situation.

Because I can’t float above the clouds at will, yet, I use music to get me to a de-cluttered headspace. I have a short playlist on Spotify, six songs, that I play on repeat through my noise-cancelling headphones to get me above the clouds.

I can do this anywhere. It is important to being able to be productive on the road, at the office, on a plane – anywhere.

By the time the second song kicks distractions are gone and I am in the zone with the project I am working on.

Over the years I have found the choice of songs as important as the number of songs. Since I could lock myself away for an hour or more they need to be songs I am happy to hear three or four times without frustration.

It is an OCD playlist after all.

It doesn’t feel like work when I am in this place. Productivity is high as is clarity. It’s like a vacation from the day to day. I love this place.

I mention it to suggest to newsagents this could be a way to find opportunities outside what you usually consider in planning for the future of your business.

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About us

How Tatts treats small business retailers

Check out this communication from Tatts to newsagent retailers:

Dear Retailer

Please be advised that Tatts Lotteries have outsourced the Responsible Play Audit and Retail Standards Reviews that were previously the responsibility of the Retail Territory Manager.  These survey audits are now conducted by an external company, Market Pulse, and are being rolled out across all Tatts Lotteries jurisdictions. http://marketpulse.com.au/

The surveys have been conducted on the Gold Coast and Brisbane CBD over the past 3-6 months and will be commencing in our area very shortly. These will be unannounced visitations and will occur on a minimum cycle of once every three months.  Retailers that do not show compliance to our retail standards will be visited more frequently.

It has been identified some stores are placing non-Golden Casket items in the dedicated Retail Image area.  This includes pens, key rings, magazines, confectionary stands, torches, postcards, drinking straws, etc. being positioned on the serving counter, bag rail, or spinner units and also allowing dump bins to block access to the counter or writing bench.

Please be reminded it is against your Tatts Lotteries Franchise Agreement to display non-Golden Casket items in the dedicated Retail Image area.   I bring this specifically to your attention as this will be checked during the visits and non-adherence to policy may result in possible breaches, non-renewal of franchise agreements, or in the worst case scenario, termination of your franchise agreement.

Market Pulse will also have the current Point of Sale planner off Retailers Web to check that your outlet is displaying the current marketing focus.  In addition, they will check that all lottery brochures, coupons and result slips are on display on your writing bench.

Audit results will be forwarded to the Tatts Group Senior Management Team and I will be following up retailers once results are received.

To ensure your visits are fully compliant, I ask that you check your Golden Casket area now and identify and remove anything that is not compliant.   If required, please order in any items as necessary through your Lotto Terminal to ensure the retail standards are being met.

Please find attached above the Responsible Play Audit checklist and Retail Standards Review for your reference.

Thank you for your assistance.

I wonder of Coles Express is treated the same.

retail space is expensive. The demands of Tatts that you not use ‘their’ space (for which they do not pay you) to only promote their product holds retailers back from maximising the opportunity.

The only test tatts should apply is are you performing at or above average in your area. How you do this should be up to you as the retailer.

This communication is paternalistic and disrespectful in my view.

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Leadership

Small business newsagents can get angry or be smart about OzLotteries and Tatts

IMG_3451I appreciate some are frustrated by the promotion of the Powerball jackpot online by tatts and OzLotteries.  This photo is another ad that came up in my facebook feed this morning. Sure, OzLotteries has a divveret cost model to newsagents and none of the compliance challenges that are expensive to newsagents.

But I want you to focus on something else. OzLotteries does not have a shop. They have to go out and put themselves in front of potential customers.

You can do this too – go outside your business, online and elsewhere, and promote this and other jackpots. But I don;t think that is wise use of your time and money.

Your best success with lotteries and their large jackpots like tonight’s Powerball $70M will be due to the location of your shop, the speed of your service, the value of the service to the shopper and tactical decisions you make for your business on the shop floor.

My advice is that you look at the online ads from Tatts and OzLotteries as a reminder of the importance of going outside your business to find new customers. To do this, you have to have products and services that are not commodities easily available online and elsewhere. you need your point of difference for your area. That is what you need to market as that is far more valuable to you than any commodity, easily available, product such as lotteries.

What is it you can promote that makes your business stand out? What is it that can attract people who otherwise might not have shopped at your business? What is it that can drive better GP on to of net new revenue for your business? These are the questions on which I would prefer newsagents to focus.

Opening your door is not a marketing activity. Calling your business a newsagency ties you into an old model that has no future. Doing in 2016 what you did is 2015 will give you 2015 results.

Take the anger / frustration / annoyance  of these online promotions by Tatts and OzLotteries of their online purchase options and direct it to finding new traffic for your business.

In the meantime, here is what I am pitching to my online communities today:

Screen Shot 2016-01-07 at 6.54.05 am

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Leadership

Why points based loyalty programs are a thing of the past for small business retailers like newsagents

Recent moves by the Woolworths supermarket chain in Australia have highlighted the sham that is major retailer loyalty programs.

Having to spend $300 and more on very specific products to get the right to request a $10 voucher that you have to spend in-store is cumbersome and not good value. It is not a reward for loyalty.

It has resulted in plenty of news stories about the Woolworths and other programs that work off points and that are more about basket analysis by the retailers than genuine shopper loyalty rewards.

Some reports have labelled points based programs old-school, yesterday’s loyalty. I agree with this assessment. That would not be a surprise to regulars here. In February 2013 I started using discount vouchers in my newsagency and I have not looked back since. Double digit growth year on year. I can track the start of it to the implementation of the discount vouchers.

Some newsagents have been late to realise this while the early adopters on of new loyalty have been benefiting for a while.

The points based programs look and feel like big business programs. Me too marketing rarely works for small business. Small business retailers need something different, more immediate, more easily understood. This is why I think the discount vouchers work well. They are simple and effective. From a  business perspective the cost and the liability are easily managed.

A well structured and professionally implemented discount voucher program can pitch your newsagency business differently to those with whom you compete. It offers genuine reward for loyalty and this is what drives shopper engagement and delivers the growth I write about.

I was talking with a retailer last week who is transitioning off a points based program because they have realised that their offer is not that different to the big retailers. Having a point of difference when it comes to loyalty is vital.

Footnote: I was talking to the new owner of a newsagency recently who had not allowed for rewarding loyalty accused while the business was under the previous owner. The previous owner refuses to fund the liability that had accused under their watch. They did not disclose the liability to the purchasers. The matter looks set to go to court as the new owner is quite aggrieved – and rightly so.

Regardless of the loyalty program you use, it is vital you track it as an asset and a liability of the business. The data must form part of what is sold with the business.

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Leadership

Why are newsagents being asked to promote Myer?

emporLast week newsagents were asked by News Corp. to hand out Woolworths bags, this week some have been asked to hand out a Myer Christmas catalogue. The Myer catalogue promotion is through the Bauer Connections program. I am surprised as this sounds like a dumb move and they know the channel well enough to know it is a dumb move no matter how it is pitched.

Did those who pushed this onto newsagents check the contents of the catalogue? Did they think about whether newsagents would want to promote a competitor? Did they put themselves in the shoes of newsagents? Did they ask any newsagents?

Myer is pitching cards, wrap and gifts in this catalogue – all items newsagents sell. Why would we promote this competitor? Of course we should not as Myer would not promote us. We have to fight for every dollar we win against them in a range of categories.

One newsagent I heard from received the catalogues and no explanation. If true, this is a botched campaign.

I suspect many Myer catalogues will end up in recycle bins.

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Leadership

Bullying in the workplace

I urge all newsagents to read the Fairwork bullying in the workplace advice and guidelines. If you are looking for this after an incident has been reported you may be accessing the information too late.

I was talking with a newsagent this week where it could be the case – where a situation had gone too far and could have been addressed sooner had the business followed the Fairwork advice.

The online guide is especially useful in outlining what is bullying and what is not.

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Leadership

Why media outlets should not give Tony Abbott a platform for now

As I wrote two weeks ago, Malcolm Turnbull brings optimism the leadership of Australia.

Malcolm Turnbull is an explainer, he provides context, he understands the importance of narrative. Whether you agree with his politics or not, and I don’t on a number of policy topics, he at least explains his position in an accessible and considerate way. His approach helps win more to his thinking and lose fewer because of it.

Despite his promise to not wreck and to not undermine Tony Abbott has been methodically doing both these things thanks to select compliant media outlets happy to provide a stage from which Tony can whinge. He has been running the type of campaign he used to win government – pitching the negative and demonstrating poor leadership.

Shame on Ray Hadley, Neil Mitchell, Andrew Bolt, Mark Kenny and others. It’s like you blokes lust for the negative pitch of Abbott rather than the positive message of inclusive conversation on issues that matter being pursued by the new Turnbull government.

While I do not advocate media censorship, I do advocate a professional approach to editing. This is what these shock jocks and journalists ought to so re Abbott – edit. By edit I mean deny him a platform for now. In a year, maybe then, but not now, not while he is like the kid who is complaining for misbehaving.

Yes, I appreciate this has nothing to do with small business newsagencies. Except, it does. The confidence of Australians matters to us. Tony Abbott’s whining tour of select compliant media outlets is doing nothing to boost consumer confidence.

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Leadership

Why all the posts today about Network Services?

The posts I have published today reflect data from one newsagency. The newsagent sent me the screen shots as evidence of the appalling oversupply they are suffering and have been suffering from Bauer’s Network Services.

While the company reps say one thing to the ACCC and have the ANF under their spell, the company does this month after month to small business newsagents.

No wonder newsagents continue to scream abut oversupply.

No study is needed to stop tis behaviour y Bauer. They are in control.

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Ethics

The importance of talking about mental health in small business newsagencies

A newsagent suicided two weeks ago leaving a young family without a parent and a business without leadership. Things had been tough for the business with landlord challenges and difficulties dealing with magazine supply. Colleague newsagents had suggested help was needed. Unfortunately, the first meeting to sort out help was two days too late.

I have known about this situation since it happened and wondered whether to write about it here. This is not the first newsagent suicide I have heard of. Each situation is different and it is unlikely anyone knows all of the factors involved.

I am writing about this today because we need to talk about mental health, the mental health of small business newsagents and how we can deal with challenges where we feel helpless. We need to work together to help any who may feel that suicide is the only option. When I say we, I mean all of us in this channel: newsagents, associations and suppliers including landlords.

Some landlord representatives are bullies. They push small business owners into a corner. I hear too many stories of intimidation of small business owners who are in vulnerable situations.

Some of our suppliers are bullies. They create financial stress and add to this by cutting off product supply when accounts over which the small business newsagents have little control are not paid on time. yes, I am talking about magazine distributors here as they control supply, they control the level of indebtedness and they, sometimes, place newsagents under extraordinary personal pressure to pay them ahead of other creditors.

These people dealing with small business newsagents need to take care in their communication, they need to be aware of the emotional and other consequences of their actions and words, or their  refusal to act. They need to consider decisions of the company they represent that could have helped create the situation. They need to consider their culpability.

I am all for personal accountability and often say we need to own our own situation – we sign our leases, we sign magazine contracts. However, we do these things expecting fairness. Too often there are people of the other side of a commercial relationship who do not believe in the same fairness.

It is hard to know the mental health of anyone. That person smiling at you or joking with you could be in a dark place in their mind. This is why it is important we talk and ask colleagues how they are doing and why we all need to help when we think help could be what is needed.

We owe it to each other in small business to do this. I think it starts with talking openly with each other about challenges and how we feel about them and their impact on us personally. It can start within the business with more open communication among all involved. Sometimes, the initiative for this will have to come from the team communicating up to the owner, to open the discussion.

Our suppliers need to play a role. Take the accounts department at a magazine distributor. They are probably the first to see a newsagency in a stressed situation. They have details of calls and emails that can reflect on the mental health of the newsagent in contact with them who is struggling to pay the bills. What do they do about this? Do they have a process of care and support for the business or do they aggressively pursue payment of the debt? My experience is they do the latter with considerable intensity. They will say they can’t do much because of privacy obligations. I’d say that is nonsense. Lives are at stake.

Given the early warning signs in the accounts department of magazine distribution businesses they ought to have a process for rallying support for a newsagent in trouble.

Owning and running a small business can be tough – on families, relationships, finances and your mental health. The ABC published a terrific report about mental illness and small business. I urge you to read this and share it. At the bottom of the ABC article is an excellent list of resources:

Mental health crises don’t always happen during office hours. But if you find yourself having to help someone there are people who can help – at any time.

National crisis and counselling contacts available 24/7:

  • Ambulance/police/fire – 000
  • Lifeline – 13 1114
  • Kids Help Line – 1800 55 1800 – Provides counselling and support for young people aged 5-25.
  • Men’s Line Australia – 1300 78 99 78 – Provides counselling and support services for men – especially those involved in the breakdown of relationships.
  • Suicide Call Back service – 1300 659 467 – Provides free nationwide professional telephone or online counseling.

Other national information and support services contacts available during business hours:

  • beyondblue information line – 1300 22 4636
  • SANE Helpline – 1800 18 SANE (1800 18 7263)
  • Telstra directory assistance – 1223 Call this number for contact details to the nearest public hospital, which can provide information on local services.

State-based resources

NSW

  • Salvo Crisis Line (suicide prevention) – 02 8736 3295
  • Salvo Care Line (regional) – 1300 36 36 22
  • Salvo Youth Line – 02 9360 3000

Victoria

  • Suicide Line – 1300 651 251
  • Victorian Government Mental Health Advice Line – 1300 280 737

South Australia

  • South Australian Assessment and Crisis Intervention Service – 131 465

Western Australia

  • Mental Health Emergency Response Line – 1300 555 788 for Peel residents 1800 676 822
  • Rurallink Psychiatric Emergency Team – 1800 552 002 | TTY: 1800 720 101 (rural WA only)
  • Samaritans Suicide Emergency Line – 1800 198 313
  • Crisis Care Helpline – 1800 199 008 | TTY: 08 9325 1232

Tasmania

  • Tasmanian Mental Health Services Helpline – 1800 332 388

Australian Capital Territory

  • Mental Health Triage Service/Crisis Assessment and Treatment Team – 1800 629 354

Northern Territory

  • Northern Territory Crisis Assessment Telephone Triage and Liaison – 1800 NTCATT (1800 682 288)

Queensland

  • 13 HEALTH – 13 432 584

General information about depression

Black Dog Institue

beyondblue

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Ethics

What small business can learn from #libspill

For all their talk about leadership, politicians rarely demonstrate this trait. Instead, they focus selfishly on themselves ahead of the needs of those they claim to serve.

This focus on self preservation is evident in Australia this weekend in the lead up to the vote on the spilling of leadership position of the parliamentary Liberal party. Watching it unfold yesterday and today on TV and online, I have been thinking about what we in small business can take away from this. Not much I think.

The same is true of the the various leadership challenges in the Labor party over their recent years in government.

Our ‘leaders’ are not leading. Despite their spin, they look after themselves first and in doing so lose direction. Here’s my small business perspective on #libspill:

  • Knowing what you stand for and clearly articulating this and why is vital. You need to know why you are in business, what your business stands for and to speak to the narrative supporting this. In business, this is your USP (Unique Selling Proposition). What sets you apart from the others. Taking others ion your journey in pursuit of this is even more vital.
  • Disunity is death. This is as true in politics as it is in business. If everyone on your team is not behind your mission they put your mission at risk.
  • This is the era of conversations. We are talking with each other more than ever, especially in business. Yet the Prime Minister through #libspill has held one-way press conferences with no two-way communication.
  • The world has changed. Tony Abbott referred to social media as graffiti. Some newsagents mock social media. Anyone dissing social media is out of touch with the people and ignoring how people communicate today.
  • Trends can start anywhere. A good hashtag on Twitter is all you could need to get noticed. Social medial is a platform where small businesses can be as noticed as big businesses – yet it is a platform many small businesses do not use. Hashtags take on a life of their own – #ImStickingWithTony
  • People know what they want. Whereas in the past you would pitch or offer something and people would respond. The world today is about giving people what they want and this starts with them engaging with you before you even have your products in-store. This is a consequence of a more connected world. Success will come sooner to those connected with this world and giving people when they want. No, that does not mean turning at every demand. Good leadership is about communicating so people learn what they need which may different from what they want.
  • People appreciate strength. Like him or not, John  Howard commanded respect. This is vital to leadership. A small business that leads will be more noticed and respected than the small business that follows. While leadership has risks and challenges, it is the place from where you can set the agenda.

What we are seeing among the federal Liberal politicians is poor leadership, self interest and ignorance of the world today. I suspect these are reasons for poor polling. In small business if we lead well, focus on our customers and connect with the world we are more likely to be successful – and show the politicians how it is done.

Footnote: I am frustrated with the business representatives media outlets interview at times like this. They claim to speak for business yet rarely do they say what I would like them to say. They should clarify their statements with a disclaimer that they represent the big business end of town and not the vast majority of business owners.

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Ethics